Hilton Head, SC Vacation Rental Market Analysis: What Investors Should Know Before Buying
Where coastal marshes meet the Atlantic Ocean, Hilton Head blends nautical charm with polished Southern hospitality. This barrier island is known for its carefully preserved shoreline, championship golf courses, and relaxed pace — a combination that continues to draw travelers year after year.
With approximately 2.8 million visitors in 2024, Hilton Head has become not just a favorite vacation destination, but also a compelling market for short-term rental investors looking to tap into steady, all-season demand.
To help you evaluate the income potential of a Hilton Head Island investment property, we created a free, downloadable Hilton Head Vacation Rental Market Analysis. Inside the report, you’ll find:
- Rental income potential by property size
- Average occupancy by property size
- Average daily rate (ADR) by property size
- Booking lead times and length of stay
- Monthly occupancy rates
- Vacation rental inventory by property size across the Hilton Head market
The findings in this analysis are based on Evolve’s Hilton Head market averages from the past year and are intended to provide a clear baseline for performance as you explore investment opportunities on the island.
👉 Download the complete Hilton Head Vacation Rental Investment Analysis.
Why Hilton Head Is a Strong Market for Vacation Rental Owners
Hilton Head has long been associated with resort-style travel — but today, vacation rentals have become the most-booked accommodation type on the island, surpassing hotels and resorts.
Strong and Shifting Traveler Demand
With more than 20 resort hotels on the island, Hilton Head has a well-established tourism economy. But recent booking trends show that travelers increasingly prefer vacation rentals, creating new opportunities for owners to capture demand.
Guests are drawn to:
- Spacious homes and villas
- Family-friendly layouts
- Private or semi-private amenities
This shift opens the door for investors looking to enter a mature market with evolving guest preferences.
Broad Appeal Across Guest Types
Hilton Head attracts a diverse mix of travelers, including:
- Golf-focused groups
- Couples and retirees
Peak demand typically begins around spring break in March, builds through summer, and slows in winter — a season that often allows owners time to complete upgrades and maintenance before peak travel returns.
A High-Value, Competitive Market
The island’s popularity does come with higher home prices. The median home value hovers around $762,000, reflecting Hilton Head’s consistent traveler demand and limited supply.
That said, buyers can still find:
- Smaller condos and villas at more accessible price points
- Opportunities in less central or non-beachfront locations
For investors ready to move quickly, Hilton Head’s upward-trending market can reward timely entry.
How Much Can You Earn With a Hilton Head Vacation Rental?
Hilton Head vacation rentals show solid earning potential across a wide range of property types. Performance depends less on a single “ideal” model and more on aligning size, location, and amenities with guest expectations.
1. Property Size: Flexibility Across the Board
One of Hilton Head’s strengths is that no single property size dominates performance.
- One- to five-bedroom properties tend to secure similar nights booked annually
- Smaller properties can perform just as consistently as larger homes
Two-bedroom homes currently make up nearly half of the island’s vacation rental inventory, and they are among the strongest performers in Evolve’s portfolio. This creates an appealing entry point for investors looking to keep upfront costs lower while maintaining strong return potential.
Larger homes still offer advantages:
- Four- and five-bedroom properties earn higher nightly rates
- They cater well to multi-generational families and group travel
- Inventory is more limited, which can support premium pricing
2. Property Location: More Than Just Beachfront
Beachfront properties are undeniably attractive, and several top-performing Hilton Head rentals sit just steps from the sand. But they aren’t the only path to strong performance. According to our experts, profitable opportunities also exist:
- In the center of the island
- Along the Calibogue Sound
- Near major hotspots like Harbor Town, golf courses, and great restaurants
This flexibility allows investors to prioritize value and location balance rather than competing exclusively for shoreline homes.
3. Property Amenities: A Key Differentiator
Because location is more flexible in Hilton Head, it’s extremely important to have the right amenities to stand out.
High-impact indoor features include:
- Reliable WiFi
- Central air conditioning
- Smart TVs and comfortable living spaces
Outdoor and community amenities also matter:
- Private pools, decks, or balconies for single-family homes
- Condo communities with pools, tennis courts, fitness centers, or hot tubs
These features help elevate guest experience and support higher ratings, repeat stays, and five-star reviews.
Download the Complete Hilton Head, SC Vacation Rental Market Analysis
With a well-established tourism economy and growing preference for vacation rentals, Hilton Head remains a market with clear income potential for short-term rental owners.
Inside the full report, you’ll find:
- Average daily rate (ADR) by property size
- Average high- and low-season length of stay
- Market inventory insights
- Demand seasonality
Evaluating an investment shouldn’t feel overwhelming. Whether you’re purchasing your first investment property or optimizing an existing home, our market data can help you compare opportunities, understand demand patterns, and chart a smooth path forward for your Hilton Head vacation rental.
👉 Download the free Hilton Head Vacation Rental Market Analysis.